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The Howard Hughes Altman Z-Score

: 0.72 (As of Today)
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Warning Sign:

Altman Z-score of 0.72 is in distress zone. This implies bankruptcy possibility in the next two years.

The Howard Hughes has a Altman Z-Score of 0.72, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

The zones of discrimination were as such:

When Altman Z-Score <= 1.8, it is in Distress Zones.
When Altman Z-Score >= 3, it is in Safe Zones.
When Altman Z-Score is between 1.8 and 3, it is in Grey Zones.

The historical rank and industry rank for The Howard Hughes's Altman Z-Score or its related term are showing as below:

HHC' s Altman Z-Score Range Over the Past 10 Years
Min: -0.6   Med: 1.13   Max: 1.89
Current: 0.72

During the past 13 years, The Howard Hughes's highest Altman Z-Score was 1.89. The lowest was -0.60. And the median was 1.13.


The Howard Hughes Altman Z-Score Historical Data

The historical data trend for The Howard Hughes's Altman Z-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

The Howard Hughes Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Altman Z-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.37 0.89 0.94 0.74 0.91

The Howard Hughes Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
Altman Z-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.86 0.72 0.91 0.91 0.70

Competitive Comparison

For the Real Estate - Diversified subindustry, The Howard Hughes's Altman Z-Score, along with its competitors' market caps and Altman Z-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

The Howard Hughes Altman Z-Score Distribution

For the Real Estate industry and Real Estate sector, The Howard Hughes's Altman Z-Score distribution charts can be found below:

* The bar in red indicates where The Howard Hughes's Altman Z-Score falls into.



The Howard Hughes Altman Z-Score Calculation

Altman Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The Howard Hughes's Altman Z-Score for today is calculated with this formula:

Z=1.2*X1+1.4*X2+3.3*X3+0.6*X4+1.0*X5
=1.2*0.0787+1.4*0.0008+3.3*0.0319+0.6*0.5932+1.0*0.159
=0.72

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency. GuruFocus does not calculate Altman Z-Score when X4 or X5 value is 0.

Trailing Twelve Months (TTM) ended in Jun. 2022:
Total Assets was $9,508 Mil.
Total Current Assets was $1,647 Mil.
Total Current Liabilities was $899 Mil.
Retained Earnings was $7 Mil.
Pre-Tax Income was 28.695 + 2.872 + 143.208 + 8.166 = $183 Mil.
Interest Expense was -28.152 + -27.438 + -32.831 + -31.556 = $-120 Mil.
Revenue was 276.708 + 210.226 + 805.676 + 219.188 = $1,512 Mil.
Market Cap (Today) was $3,597 Mil.
Total Liabilities was $6,064 Mil.

* Note that for stock reported semi-annually or annually, GuruFocus uses latest annual data as the TTM data.

X1=Working Capital/Total Assets
=(Total Current Assets - Total Current Liabilities)/Total Assets
=(1647.438 - 899.075)/9508.08
=0.0787

X2=Retained Earnings/Total Assets
=7.23/9508.08
=0.0008

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(182.941 - -119.977)/9508.08
=0.0319

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=3597.233/6064.279
=0.5932

X5=Revenue/Total Assets
=1511.798/9508.08
=0.159

The zones of discrimination were as such:

Distress Zones - 1.81 < Grey Zones < 2.99 - Safe Zones

The Howard Hughes has a Altman Z-Score of 0.72 indicating it is in Distress Zones.

Study by Altman found that companies that are in Distress Zone have more than 80% of chances of bankruptcy in two years.


The Howard Hughes  (NYSE:HHC) Altman Z-Score Explanation

X1: The Working Capital/Total Assets (WC/TA) ratio is a measure of the net liquid assets of the firm relative to the total capitalization. Working capital is defined as the difference between current assets and current liabilities. Ordinarily, a firm experiencing consistent operating losses will have shrinking current assets in relation to total assets. Altman found this one proved to be the most valuable liquidity ratio comparing with the current ratio and the quick ratio. This is however the least significant of the five factors.

X2: Retained Earnings/Total Assets: the RE/TA ratio measures the leverage of a firm. Retained earnings is the account which reports the total amount of reinvested earnings and/or losses of a firm over its entire life. Those firms with high RE, relative to TA, have financed their assets through retention of profits and have not utilized as much debt.

X3, Earnings Before Interest and Taxes/Total Assets (EBIT/TA): This ratio is a measure of the true productivity of the firm's assets, independent of any tax or leverage factors. Since a firm's ultimate existence is based on the earning power of its assets, this ratio appears to be particularly appropriate for studies dealing with corporate failure. This ratio continually outperforms other profitability measures, including cash flow.

X4, Market Value of Equity/Book Value of Total Liabilities (MVE/TL): The measure shows how much the firm's assets can decline in value (measured by market value of equity plus debt) before the liabilities exceed the assets and the firm becomes insolvent.

X5, Revenue/Total Assets (S/TA): The capital-turnover ratio is a standard financial ratio illustrating the sales generating ability of the firm's assets.

Read more about Altman Z-Score and the original research.


Be Aware

Altman Z-Score does not apply to financial companies.


The Howard Hughes Altman Z-Score Related Terms

Thank you for viewing the detailed overview of The Howard Hughes's Altman Z-Score provided by GuruFocus.com. Please click on the following links to see related term pages.


The Howard Hughes Business Description

The Howard Hughes logo
Traded in Other Exchanges
Address
9950 Woodloch Forest Drive, Suite 1100, 11th Floor, The Woodlands, TX, USA, 77380
The Howard Hughes Corp is a real estate company that develops master-planned communities (MPCs) and is involved in other strategic real estate development opportunities across the United States. The company operates in four segments: Operating Assets, MPCs, Seaport, and Strategic Developments. Operating Assets manages real estate that generates recurring cash flows; MPC develops residential land and sells improved acreage to homebuilders; Seaport encompasses renovated buildings, including restaurants, outdoor bars, and event venues; and Strategic Developments is involved in seeking, planning, and investing in real estate opportunities and development rights. Among those segments, Operating Assets and MPC are the company's most profitable divisions.
Executives
Olea Carlos A. officer: CHIEF FINANCIAL OFFICER 9950 WOODLOCH FOREST DRIVE SUITE 1100 THE WOODLANDS TX 77381
O'reilly David R. director, officer: Director and CEO 390 N. ORANGE AVENUE STE. 2400 ORLANDO FL 32801
Striph David Michael officer: EVP, Head of Operations ONE GALLERIA TOWER 13355 NOEL ROAD, 22ND FLOOR DALLAS TX 75240
Fitchitt Greg officer: President, Columbia ONE GALLERIA TOWER 13355 NOEL ROAD, 22ND FLOOR DALLAS TX 75240
Orrock Kevin officer: President, Summerlin ONE GALLERIA TOWER 13355 NOEL ROAD, 22ND FLOOR DALLAS TX 75240
Johnstone Douglas officer: Regional President, Hawaii ONE GALLERIA TOWER 13355 NOEL ROAD, 22ND FOOR DALLAS TX 75240
Carman James officer: President, Houston Region ONE GALLERIA TOWER 13355 NOEL ROAD, 22ND FOOR DALLAS TX 75240
Melton Heath officer: PRESIDENT, PHOENIX REGION 9950 WOODLOCH FOREST DRIVE SUITE 1100 THE WOODLANDS TX 77381
Loeffler Correne S officer: Chief Financial Officer 1401 ENCLAVE PARKWAY SUITE 600 HOUSTON TX 77077
Williams Anthony director 9950 WOODLOCH FOREST DRIVE, SUITE 1100 THE WOODLANDS TX 77380
Cross L Jay officer: President 233 SOUTH WACKER DRIVE SUITE 4600 CHICAGO IL 60606
Tighe Mary Ann director 13355 NOEL ROAD, 22ND FLOOR DALLAS TX 75240
Kaplan Beth J director 1716 LOCUST STREET DES MOINES IA 50309
Slosser Michael officer: EVP - Hospitality ONE GALLERIA TOWER 13355 NOEL ROAD, 22ND FLOOR DALLAS TX 75240
Treacy Simon Joseph officer: President, Hawaii ONE GALLERIA TOWER 13355 NOEL ROAD, 22ND FLOOR DALLAS TX 75240

The Howard Hughes Headlines

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